It’s easy to feel like microfinance has lost a bit of its shine.
From the recent travails of Muhummad Yunnus and the Grameen Bank to the “no pay” movements in northern India and Latin America, it hasn’t been a great year for the idea that microfinance can overcome poverty.
And that’s exactly the point.
Microfinance doesn’t break the grip of poverty–people do. People like Ms. Rita, a Kiva borrower I met and interviewed during my time as a Kiva Fellow in 2008.
Rita shows us that microfinance isn’t a solution unto itself. Microfinance is simply the extension of financial services to the world’s poor. Rita’s loan didn’t make her successful; Rita used her loan to make herself successful.
Because microfinance services allow individuals to leverage their own creativity and enterprise in the face of need, OneSeed believes in microfinance.